The Fashion Label During a Recession

This is an article printed in today’s Wall Street Journal. Chronicling modern brand Five Four’s experience in the bust and the strategies it implemented to survive in ’09.

“Back in September, menswear label Five Four sold out of a new $325 peacoat in one week. Buoyed by strong orders from retailers, including Macy’s, designer Andres Izquieta ordered luxurious fabrics from an Italian mill.

“I was thinking we were going to have a new category of $300 to $500 coats for fall 2009,” says Mr. Izquieta, 28 years old. His co-chief executive, Dee Murthy, also 28, was confident, too; indeed, he had splurged on a new Aston Martin Vantage sports car for himself in March.

Alas, when world markets crashed the following month, consumers snapped their wallets shut. Many of the retailers that sold Five Four’s trendy, casual jackets, shirts and other heavily detailed pieces canceled orders or backed out of payments.

Suddenly, Five Four found itself in free fall. “I feel like I woke up the first week of October, when everything stopped,” Mr. Murthy says. The founders of the Los Angeles-based company would have to act quickly.” (read more)